CBSE Class 11 Business Studies Nature and Purpose Of Business MCQs Set 01

Question: Name the auxiliary to trade which removes the hindrance of time

a) Warehousing

b) Trade

c) Transportation.

d) Banking

Answer: Warehousing

Question: Soaps are included under which type of industry

a) Synthetical Industry.

b) Analytical Industry.

c) Processing Industry.

d) Assembling Industry.

Answer: Synthetical Industry.

Question: The economic activity in which specialized knowledge is required is

a) Profession

b) Business

c) Employment

d) None of the options

Answer: Profession

Question: Everest Textile Ltd is involved in manufacturing textile products. In which industry is the company involved?

a) Processing industry.

b) Analytical industry

c) Synthetic industry

d) Extractive industry

Answer: Processing industry.

Question: The industries which provides support services to other industries are known as

a) Tertiary

b) Secondary

c) Manufacturing

d) Primary

Answer: Tertiary

Question: A business firm in India buy toys from China to sell it to Nepal. Identify the type of trading activity mentioned above?

a) Entreport

b) Export

c) Import

d) Retail trade

Answer: Entreport

Question: Code of conduct DOES NOT include

a) Dishonesty

b) Rules

c) Morality

d) Integrity

Answer: Dishonesty

Question: Which of the following creates form utility?

a) Industry

b) Trade

c) Commerce

d) Business

Answer: Industry

Question: Risk is the result of

a) Uncertainties

b) None of the options

c) Both of the above

d) Certainties

Answer: Uncertainties

Question: Commerce includes

a) Trade and aids to trade

b) Business and industry

c) Business and Trade

d) None of the options

Answer: Trade and aids to trade

More Questions...................

Question: Which one of the following is an economic activity in which specialized knowledge is required?

a) Profession

b) Business

c) Employment

d) None of the options

Answer: Profession

Question: Which one of the following is NOT an Auxiliary to trade?

a) Mining

b) Warehousing

c) Insurance

d) Transport

Answer: Mining

Question: Name the activity of commerce that removes the hindrance of time.

a) Warehousing

b) Advertising

c) Transportation

d) Banking

Answer: Warehousing

Question: The latest generation of mobile phones has many features like faster internet browsing, Bluetooth etc. This is an example which objective of business?

a) Innovation

b) Earning profits

c) Market standing

d) Productivity

Answer: Innovation

Question: Business =

a) Industry + Commerce

b) Industry + Trade

c) Trade + Aids to Trade

d) Trade + Commerce

Answer: Industry + Commerce

Question: Which one of the following is NOT the objective of the business?

a) Investment

b) Innovation.

c) Creation of customers.

d) Profit making

Answer: Investment

Question: What reward an entrepreneur gets for risk bearing in business?

a) Profit

b) Fees

c) Salary

d) Interest

Answer: Profit

Question: Why a business should earn profit?

a) All the above.

b) To increase the reputation of business.

c) To provide funds for future growth.

d) To provide return to investors.

Answer: All the above.

Question: Bad debts due to non-payment of debts by debtors is an example of which type of business risk?

a) Human

b) Natural

c) Physical

d) Economic

Answer: Human

Question: Which one of the following is NOT a characteristic of business?

a) Managing Business

b) Customer satisfaction

c) Profit Earning

d) Risk bearing.

Answer: Managing Business

Question: Which one of the following economic activity is directed towards producing or acquiring wealth through buying and selling of goods?

a) Business.

b) Profession

c) Employment

d) Management

Answer: Business.

Question: Match the following type industries in Column 1 and Column 2

a) I-D; II-C; III-B ; IV-A

b) I- A; II-B; C-III; D-IV

c) I-B; II-C; III-D; IV-A

d) I-C; II-D;III-A; IV-B

Answer: I-D; II-C; III-B ; IV-A

Question: Economic activities may be classified into business, ___________ and employment

a) Profession

b) Vocation

c) Occupation

d) Work

Answer: Profession

Question: Which of the following is not an example of non-economic activity

a) Teaching

b) Sentiment

c) Patriotism

d) Sympathy

Answer: Teaching

Question: Human activities are of ____________ types

a) Two

b) One

c) Three

d) Four

Answer: Two

Question: Transfer of interest exists in the case of

a) Business

b) None of these

c) Employment

d) Profession

Answer: Business

Question: Following are the characteristics of business risks. One of then is not correct. Please identify it.

a) Loss is the reward for risk bearing

b) Business risks are due to uncertainties

c) Risk is an essential component of every business

d) Degree of risk depends mainly upon the nature and size of business

Answer: Loss is the reward for risk bearing

Question: Earning of profit is considered to be the subsidiary objective of the business.The given statement is

a) FALSE

b) TRUE

c) Cannot say

d) None of these

Answer: FALSE

Question: Commerce includes activities relating to trade and _________________ to trade.

a) Auxiliaries

b) Subsidiaries

c) Supporting

d) None of these

Answer: Auxiliaries

Question: Name the two broad categories of business activities.

a) Industry and commerce

b) Trade and industry

c) Trade and commerce

d) None of these

Answer: Industry and commerce

Question: Which one of the following may not be a factor behind starting a business

a) Routine workload

b) Size of the firm

c) Finance

d) Location of the business

Answer: Routine workload

Question: The possibilities of inadequate profits or even losses due to uncertainties are known as

a) Business risks

b) Business contingencies

c) Business ventures

d) None of these

Answer: Business risks